ESC1601
University of Johannesburg (UJ)
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Examen
ESC1601 assignment 5 2023
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---5octubre 20232023/2024A+
- Question 3 (Word count = 200 ) 
Economic effects 
Inflation Rising fuel and transport costs cause inflationary pressure. Higher costs are 
passed on to consumers in the form of higher prices for goods and services. 
Consumer spending Higher transport and fuel costs reduce consumers' disposable 
income, potentially leading to lower spending and dampening economic growth. 
Production costs Increased fuel prices raise production costs for businesses that rely 
on transportation, which may result i...
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